Recent analysis has revealed that nearly 20,000 childcare providers are at a risk of closure because of government funding changes. According to Labour’s analysis, these childcare providers could close within six months if the government continue to push ahead with changes to the early years funding system in the new year.
Since March, the impact of Covid-19 has led to a stark decline in the number of families accessing childcare places. Government plans to change funding for nurseries, childminders and pre-schools, to match these current low levels of attendance from January 2021, and it could see 25% of providers close within six months according to a survey by the Early Years Alliance. Mass closures of early years providers would lead to many parents being unable to access the childcare they need, making it harder for many parents to return to work.
Tulip Siddiq MP, Labour’s Shadow Minister for Children and Early Years, in a statement said, “The government have repeatedly failed to give the early years sector the support that it needs throughout this pandemic, and now many thousands are facing a cliff-edge. The government’s plans to change funding in the midst of a pandemic and while childcare attendance is down could put thousands of providers and jobs at risk. They must urgently rethink these plans."
